Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) has doubled down on a northern extension at its Gonneville deposit, part of the prolific Julimar nickel-copper-platinum group element (PGE) project in WA.
The explorer recently embarked on a drilling campaign at Gonneville, validating a 2D seismic survey interpretation that hit the complex’s northern extension down-plunge.
Chalice has confirmed the northern extension of the Gonneville Intrusion (and, more broadly, the Julimar Complex) is offset roughly 650 metres west-north-west by a fault, consistent with the earlier seismic interpretation.
Drill bit hits
Extensional drilling across the Gonneville resource has extended the mineralised zones up to 600 metres beyond the current envelope, unveiling several new high-grade results. Some of the best hits include:
- 70 metres at 2.4 g/t platinum, palladium and gold (3E), 0.2% nickel, 0.2% copper, 0.02% cobalt (1.2% nickel equivalent) from 638 metres, including 16.9 metres at 7.9g/t 3E, 0.4% nickel, 0.6% copper, 0.03% cobalt (3.5% nickel) from 638 metres;
- 14 metres at 5.8 g/t 3E, 0.2% nickel, 0.2% copper, 0.01% cobalt (2.2% nickel equivalent) from 689 metres;
- 3.4 metres at 4.3 g/t 3E, 0.7% nickel, 0.9% copper, 0.04% cobalt (2.9% nickel equivalent) from 718.5 metres;
- 7 metres at 5 g/t 3E, 0.3% nickel, 0.3% copper, 0.02% cobalt (2.2% nickel equivalent) from 570 metres; and
- 5.3 metres at 5.5 g/t 3E, 0.2% nickel, 0.6% copper, 0.02% cobalt (2.3% nickel equivalent) from 898 metres.
Chalice has also found consistent PGE-nickel-copper-cobalt sulphides in all 10 holes assayed at the Hooley-Dampier prospects, 5-10 kilometres north of the Gonneville resource.
Three rigs continue to test this trend, while seismic/electromagnetic techniques will be used to vector towards high-grade zones.
CHN shares have been as much as 12.1% higher intraday to A$4.45 while the company's market cap is approximately A$1.59 billion.
Joint venture on the cards
As it considers Gonneville’s economic potential, Chalice is considering whether a strategic minority joint venture partner — or partners — could help it develop a mine down the track.
Given the Julimar project’s considerable scale, Chalice may one day recruit a collaborator that can provide technical expertise, market familiarity and financial strength to support development.
Several large international trading houses, downstream battery and auto manufacturers have expressed interest to date, with the recent Inflation Reduction Act bill in the United States resulting in a significant increase in inbound interest in Julimar’s large nickel sulphide endowment.
Nevertheless, at this stage, discussions with potential partners remain preliminary, and Chalice remains focused on delivering the scoping study for a Gonneville mine development in late 2022.
In the meantime, Chalice is keeping busy with the following programs:
- Resource definition and extensional diamond drilling at Gonneville with two drill rigs.
- Detailed infill reverse circulation (RC) resource definition drilling over a small area of the Gonneville resource.
- Reconnaissance diamond drilling across the Hartog, Hooley and Dampier prospects.
- Reconnaissance diamond drilling at the Baudin Target.
- Moving loop electromagnetic and downhole electromagnetic surveys across the Julimar Complex, with further seismic surveying also planned.
- Access discussions for the Bindoon Training Area, which covers the high-priority Flinders Target.
- Mine development studies to support the scoping study.
- Baseline surveys of ground water, surface water, flora, fauna and dieback.